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America’s Deepening Skill Crisis: Why Are Youth Literacy and Numeracy Plummeting Despite Rising Graduation Rates?

October 19, 2025
in Education
Reading Time: 4 min

New findings from the 2023 Program for the International Assessment of Adult Competencies (PIAAC), released by the US Department of Education’s National Center for Education Statistics (NCES), expose a disturbing trend: a considerable drop in literacy and numeracy among American young adults aged 16 to 24. This decline is happening even as high school graduation rates continue to climb, leaving millions of young Americans without the fundamental skills required for higher education or entry into skilled professions.

A Growing Tide of Struggling Readers

The NCES report highlights a stark increase in adults struggling with basic reading. The percentage of adults performing at the lowest literacy level (Level 1 or below) jumped from 19% in 2017 to 28% in 2023. For young adults specifically (ages 16-24), this figure climbed from 16% to a concerning 25%. This means roughly five million individuals—a population equivalent to Alabama—are now grappling with fundamental reading and comprehension tasks.

Average literacy scores have consistently dropped across all educational attainment levels:

  • Adults with less than a high school diploma: From 238 to 213
  • Adults with a high school diploma: From 259 to 246
  • Adults with more than a high school degree: From 294 to 287

Diplomas Don’t Guarantee Essential Skills

Despite an increase in high school diploma holders among young adults, rising from 50% to 55% between 2017 and 2023, this very group saw the most significant dip in literacy. Even those with more than a high school education experienced a decline in scores, from 294 to 287. This troubling trend suggests that merely obtaining a diploma no longer ensures functional literacy or the necessary skills for a successful professional or academic path.

Failing in Core Competencies: Numeracy and Problem-Solving

Beyond literacy, U.S. adults have also experienced a decline in numeracy and problem-solving abilities since 2017. While literacy scores are now roughly on par with the international average, the NCES reports that American adults fall below average in these critical areas. NCES Commissioner Peggy Carr expressed concern over a widening “skills gap,” noting a shrinking middle ground in workforce readiness and an increasing disparity between top and bottom performers.

Demographic Disparities Widen the Gap

The report also starkly illustrates significant racial and nativist disparities in literacy:

  • Literacy proficiency dropped most dramatically among Black and Hispanic adults, with 50% of Black adults and 45% of Hispanic adults scoring at Level 1 or below.
  • Among native-born adults, 27% fell into the lowest literacy bracket, a figure dwarfed by the 52% among non-native-born adults.

These findings underscore ongoing systemic challenges for racial minorities and immigrant populations in accessing high-quality education and preparing for the workforce.

Urgent Call for Educational Reform and Workforce Readiness Initiatives

The NCES data unequivocally points to an urgent need for comprehensive interventions in both K-12 and adult education. The current trend of increasing graduation rates without a corresponding improvement in literacy skills leaves young adults profoundly unprepared for either higher education or skilled employment. This necessitates a fundamental re-evaluation by policymakers, educators, and employers of how foundational literacy and numeracy are taught, to genuinely equip students for the demands of the modern workforce.

Bridging the Gap: A Critical Imperative for America’s Future

The 2023 PIAAC data serves as a sobering confirmation of a deeply troubling trend across the United States. Despite commendable progress in high school completion, the functional literacy and numeracy of young adults are in decline. This means millions of Americans are currently ill-equipped to meet the rigorous demands of higher education and the evolving modern workforce. Effectively addressing these foundational skill gaps is not just important; it’s absolutely critical for safeguarding America’s future competitiveness and ensuring social mobility for all its citizens.

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